Definition for Bond

Banking Bondbond

A bond is a debt security issued for a period of more than one year with the purpose of raising capital by borrowing. The bonds are sell by Federal government, cities, corporations, states and many other types of institutions.

Bond is work like a loan: the issuer is the debtor, the holder is the lender, and the coupon is the interest. Stocks and Bonds are both securities, however the main distinction between both is that stockholders have an equity share within the firm (they’re owners), whereas bondholders have a creditor stake in the company (they are lenders).

Credit quality and duration are the two features of a bond – and decid the principal of the bond’s rate of interest. Several bonds aged within 90 days but many bonds require 3 decades, Their maturities range between a ninety day Treasury bill to a thirty years govt bond. Corporate and municipals bonds mature within the three to ten-year range.

Be Sociable, Share!
Tags: , , , , ,

Stock Market Basics For Beginners

What Attention Should One Consider Before Investing?

What Attention Should One Consider Before Investing? [ad name="Banner 468 x 60 Text emage"] Golden rules for new investors Receive written docs describing the investment View and understand this kind of documents Confirm the authenticity of ...…

Who determines the IPO price?

Who determines the IPO price? The regulators don't play a role in fixing the price for IPO issues. The firm determines the value or price band in discussion along with ...…

What Is A Issue Price?

What Is A Issue Price? The price where a firm's shares are provided at first in the primary market is known as the Issue price. When they start to be ...…

What is securities?

What is securities? The securities are generally categorized into debt securities and equity securities , The  banknotes, bonds and debentures are a debt securities , The  futures, forwards, ...…

Term Follow On Offering

Term Follow On Offering An selling of more shares after a firm has had an IPO. several times the firm is strapped for funds. Therefore they need to release ...…

Indian Share Tips

NSE Investment Site

Market Update

Share Guide

Designed by VMV
web
analytics